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Omar Venerio
Omar Venerio
Articles (1681) 

Wednesday Morning Market Highlights

Wall Street in the green, Oracle posts weaker-than-expected fourth quarter sales

US markets

U.S. stocks were in the green on Wednesday after researchers in the UK have shown that dexamethasone can help reduce the chance of death in severely ill Covid-19 patients by approximately a third. The Dow Jones Industrial Average gained 0.22% to 26,341, the S&P 500 index rose 0.32% to 3,134 and the Nasdaq Composite Index was down 0.57% to 9,952.

Gainers

• J.B. Hunt Transport Services, Inc. (NASDAQ:JBHT) +1.3%

• Genuine Parts Company (NYSE:GPC) +0.79%

• Eastman Chemical Company (NYSE:EMN) +0.50%

• Flowserve Corporation (NYSE:FLS) +0.08%

Losers

• Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) -7.9%

• Royal Caribbean Cruises Ltd. (NYSE:RCL) -6.2%

• Carnival Corporation & Plc (NYSE:CCL) -5.1%

• Nordstrom, Inc. (NYSE:JWN) -4.7%

Global markets

The main European stock markets traded in the green.The UK's FTSE 100 rose 0.60%, France's CAC 40 advanced 1.21%, Germany's Dax inched up 0.78% and Spain's Ibex 35 jumped 0.28%.

In Asia, Japan's Nikkei 225 slid 0.56%, India’s BSE Sensex dipped 0.29%, Hong Kong's Hang Seng advanced 0.56% and China's Shanghai Composite was up 0.14%.

Oracle releases earnings report

Shares of Oracle Corporation (NYSE:ORCL) fell 3% on pre-market trading Wednesday morning after the company announced its fiscal fourth-quarter 2020 results the day before. It posted earnings per share of $1.20, beating analysts’ estimates by 5 cents. Revenue of $10.44 billion declined 6.3% year-over-year and fell short of predictions by $240 million.

CEO Safra Catz had the following to say:

"Our overall business did remarkably well considering the pandemic, but our results would have been even better except for customers in the hardest-hit industries that we serve such as hospitality, retail, and transportation postponing some of their purchases. Still, for the third year in a row, we delivered double-digit constant currency earnings per share growth in FY20."

By segment, Cloud services and license support revenues were $6.8 billion, up 1% year-over-year and 3%, respectively. Cloud license and on-premise license revenues reached $1.96 billion.

The GAAP operating income inched up 1% year-over-year to $4.3 billion, while GAAP operating margin was 41%. Non-GAAP operating income was down 2% year-over-year to $5.1 billion, while non-GAAP operating margin was 49%.

For full fiscal 2020, total revenues were $39.1 billion, down 1% year-over-year. Cloud services and license support revenues were $27.4 billion, up 3% year-over-year. Cloud license and on-premise license revenues were $5.1 billion.

Looking ahead the first quarter, the company expects non-GAAP earnings growth in the range of 5% to 9%, or 85 cents to 89 cents per share.

In the first quarter of calendar 2020, Ken Fisher (Trades, Portfolio) trimmed his holding in the company by 17% to 13,209,055 shares and First Pacific Advisors (Trades, Portfolio) cut its holdings by 6% to 374,645 shares. Jim Simons' Renaissance Technologies sold out of the stock.

Disclosure: The author holds no positions in any stocks mentioned.

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About the author:

Omar Venerio
Omar Venerio is a capital markets, derivatives, corporate finance and financial management professor and Area Head of Finance. He is passionate about the stock market and providing independent fundamental research and hedge fund and insider trading-focused investigation.

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